Houston gas record could be days away

Gasoline prices are likely to reach a record high in Houston in the coming days.

Gasoline edged up 3 cents to $3.85 over the weekend in Houston, bringing them 11 cents off the record of $3.96 in July 2008, according to AAA gas gauge. Prices have risen 32 in Houston over the past month.

The national average is up a penny to $3.89 over the weekend and the Texas price edged up 2 cents to $3.78, according to AAA.

Tom Kloza, the chief analyst for Oil Price Information Services, said the prices are likely to see another rise in the coming weeks as refineries switch to the summer blend.

"Prices for those summer blends indicate that we'll move another 10 to 25 cents a gallon higher between now and April," Kloza said.

Those rises will almost certainly put Houston prices at, very near or over the 2008 record price, and prices are expected to continue a slow rise until May, Kloza said.

Gasoline prices have been steadily rising since Jan. 1 as crude oil continues to trade above $100, but Kloza said the prices should begin to fall in the final 100 days in 2012.

Iran threat

Price could temporarily spike in July as sanctions against Iran go into effect and a Philadelphia refinery closes it doors. Kloza said those could create short-term higher prices for consumers at the pump.

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However, those prices could skyrocket if tensions with Iran come to a head, Kloza said.

If Iran closes the Strait of Hormuz, Kloza said prices could double and peak at $8.67. Under that scenario, crude oil price could top the $240-mark, causing gasoline prices to double.

Kloza said those higher prices could prompt massive behavioral change in the U.S. and abroad and it could make cellulosic ethanol economically viable.

According to a USA Today story, Farid Abolfathi, senior director of the HIS Risk Center, said closing the strait wouldn't be in Iran's best interests. The report also noted that Iran has assured other Middle Eastern countries that it does not plan on closing the strait.